October 23, 2020
With HBO Max looking to expand its presence in Latina America and Western Europe in 2021, WarnerMedia’s subscription streaming VOD platform will also tackle an ad-supported option going forward — that could include live sports.
Speaking on AT&T’s recent fiscal call, CEO John Stankey addressed a host of questions on Max and its relation to the existing pay-TV ecosystem, and its main draw: live sports. WarnerMedia’s TNT networks has major distribution agreements with the NBA, Major League Baseball and the NCAA Men’s Basketball National Championship Tournament.
Stankey said that live sports will remain a unique pillar of pay-TV, which he contends will be the distribution channel’s key advantage when cord-cutting reduces the pay-TV household footprint to around 50 million to 60 million in the coming years.
“Sports content is important to our linear business, our cable networks business to make sure we have enough of it that sustains that business and keeps it at attractive must-have offering, an offering that our customers want to have in that cable bundle,” Stankey said.
At the same time, AT&T’s online TV platform, AT&T TV, and Max aim to push WarnerMedia content beyond premium television. And live sports could be part of the mix — as professional soccer, cycling is doing in Europe. Stankey said the concept of adding live sports to streaming video distribution is appealing.
“You’ll probably see as we move through AVOD, maybe we do some additional live work that we have coming forward,” he said.
But Stankey cautioned that any move would be complementary to pay-TV and not involve growing the company’s sports footprint to include additional leagues beyond e-sports and gaming. WarnerMedia recently launched “TNT Bets,” an online companion show available through the TNT app that features live-streamed feed of the games, commentary on betting analysis and odds.
“ELEAGUE,” the interactive gaming show that airs on TBS, just partnered with Amazon’s Twitch for “Super Punch,” an interactive show where fans can discuss the most relevant gaming topics of the day and week.
“Our goal is not to become known as the sports company,” Stankey said. “I don’t see going deeper in sports is the direction for WarnerMedia.”